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House prices: 'Two-speed market' since Brexit vote

Rightmove and Your Move reports for September reveal stark divide between north and south

House prices: 'Two-speed market' since Brexit vote

House prices are following a "divergent" trend in a "two-speed housing market" since the referendum in June, according to two surveys.

Online property firm Rightmove reported a positive overall trend for England and Wales, with the number of transactions bouncing back from the summer slowdown and house prices jumping 0.9 per cent in September, reaching an average of £309,122.

A rival index produced on behalf of Your Move found a slower rate of growth for September, with house prices in England and Wales edging just £120 higher to £292,763. Despite this, the average home is worth £10,000 more year-on-year.

However, both reports indicated a stark regional divide beneath the headline numbers.

Your Move director Adrian Gill said: "We’re seeing a two-speed market become firmly established as cheaper parts of the capital and the regions record big price increases driven by demand for affordable homes while prime London property stalls."

The divide is broadly between the north and the south of the country, said Rightmove, with the former currently a seller's market while buyers have the edge in the south.

The Daily Telegraph reports: "In the north of England… there are 11 per cent fewer homes on the market than in this time in 2015. However, the number of sales has risen by three per cent, meaning there are more buyers, but with less choice.

"Further south, however… [there are] 16 per cent more homes for sale than last year, but the number of sales has fallen 10 per cent."

This could be because properties are already overvalued in the south, particularly in London, and affordability has been stretched, Rightmove director Miles Shipside said.

While house price inflation is slowing in the south, in most areas predictions that the market would slump in the wake of the Brexit vote is still being proven wrong. In addition, despite the acceleration in northern areas, there remains a big valuation gap.

According to Your Move, prices in the north-west rose by the joint-highest rate of 0.3 per cent in September and the average house price reached £177,760.

In London, prices dipped 0.6 per cent, but the average home is worth £580,930, while a typical property across the wider south-east is valued at £309,835.